Consumer impulsivity accounts for a large percentage of purchases yet this aspect of personality is measured with a variety of instruments. Three studies were conducted to examine how measures of consumer impulsiveness relate to each other, other measures of trait level impulsivity, and a variety of decisions and judgments. These studies looked at the relationship between biases resulting from motivated reasoning and the trait of impulsiveness. Motivated reasoning and impulsiveness was considered within the context of consumer and other choice decisions. Consumer impulsivity was found to be related to both general measures of trait level impulsivity as well as containing a lot of content overlap among the three measures considered here. One measure was distinct and formed its own factor in a factor analysis suggesting it may be the most specific measure of consumer impulsivity. The other measures of consumer impulsivity overlapped quite a bit with general impulsivity. The Iowa Gambling Task was used to measure both choice behavior and anticipatory SCR, however no significant results were found. The cups task, a risky decision making task, was also administered and results mirrored classic findings such that participants were more risk averse in the domain of gains than losses. Additionally, both expected value and outcome magnitude influenced results. Individuals who scored higher on the UPPS urgency subscale made more risk advantageous choices when looking at sensitivity to expected value. The third task assessed differences in purchase time for hedonic and utilitarian items. Impulsive consumers reported they would purchase both hedonic and utilitarian items sooner than their less impulsive counterparts.

Current neurobiological models of adolescent decision-making suggest that heightened risk taking during adolescence is a result of the asynchronous development of neural regions underlying cognitive control and reward processing, particularly during periods of heightened social and affective arousal (e.g., Casey, Getz, & Galván, 2008; Steinberg, 2008). Despite the emphasis on the interplay of cognitive and emotional processes during adolescence, the developmental literature has largely overlooked the potential importance of maturational changes in the anterior insular cortex (AIC), a region known for its role as a cognitive-emotional hub. In a recent review we proposed a theory of adolescent risk-taking in which development of the AIC, and its connectivity to other regions, biases adolescents towards engagement in risky behaviors (Smith, Steinberg, & Chein, 2014b). The current studies provide a test of the proposed model through an examination of specific aspects of AIC development and functioning, including the trajectory of structural development within the AIC, the role of AIC engagement in adolescents' risky decision-making, and the impacts of affective arousal on AIC recruitment. Results from Study 1 suggest that the AIC exhibits continued developmental changes during adolescence that likely affect its involvement in cognitive processes. Using a risk-taking task, Study 2 demonstrates the flexible role of the AIC during adolescent decision-making and explores how affective arousal biases the AIC towards engagement in risky behaviors. Implications for both the proposed model and the developmental literature are discussed. / Psychology

Economic preferences are fundamental to risky decision making and other economic decision- making. Unlike traditional economics, which routinely assumes that individuals are endowed with stable preferences and try to maximize the expected utility when facing risky decision-making problems, behavioral economics and neuroeconomics offer research strategies that help us explore the factors that influence economic preferences and risky decision-making process. This dissertation consists of three essays studying the underlying experiential influences on economic preferences and neurobiological effects on risky decision making. Chapter 2 examines whether experiences during adolescence have a long-term effect on economic preferences. Between 1966 and 1976, China's Sent-Down Movement required seventeen million urban teenagers to spend several years living and working in rural areas. The program had a number of goals for participants, including learning empathy for rural laborers and developing collectivist values. The sent-down movement can be regarded as a natural experiment, which allows us to investigate whether this government policy was successful in effecting a lasting change to economic preferences. Using a modified Global Preference Survey and employing a regression discontinuity design, we find that the experience of being Sent-Down significantly changed participants' risk preferences, other-regarding preferences, and attitudes toward government. Chapter 3 explores how the arousal system modulates attention and investment behavior. Experimental research shows that human decision making is shaped by emotions associated with an outcome's success or failure. Regret, for example, is a powerful predictor of future investment decisions in asset markets. Using a fictive learning model to capture regret, we examine changes in pupil diameter of participants performing a sequential investing task. By manipulating task uncertainty, we show that pupil dilation is positively correlated with both asset price variance and regret. In addition, pupil linked arousal is positively associated with the learning rate. We conclude that the pupil–linked arousal system helps regulate investment behavior in a dynamic market environment. Chapter 4 explores the complex process by which people make risky choices. While traditional models, like expected utility theory, model choice as the selection of the outcome with the highest probability-weighted value, research shows that in some environments these models do a poor job of describing behavior. This study explores the role of attention, pupil-linked arousal, and salience in risky choice. First, we replicate earlier findings that those choices are consistent with expected utility theory when the calculation is easy, however, as the calculation becomes harder, they make decisions by comparing unweighted payoffs and are attend to the salient option. Further, we find that pupil-linked arousal is associated with the level of cognitive effort needed to calculate expected utility. Finally, we show that arousal reflects cognitive effort associated with resisted selecting a more salient option. / Doctor of Philosophy / Economic decisions are those involving trade-offs where an individual must give up one item or possibility to get another. Economic preferences define which outcome an individual will value more, and helps explain why, for example, some people invest their money in high-risk and high- yield bonds while others keep their money in their savings account. Economists and other social scientists are interested in the differences between individuals' economic preferences, how they are formed, and how they translate into peoples' decisions. Risky decision making is one common type of economic decision that people make daily, for example, investing in the stock market, gambling in casinos, buying lottery tickets or trying a new restaurant. We know that when two people make different decisions that sometimes it is because they have different preferences, and sometimes it is because they go about making decisions in different ways. This dissertation explores whether people's early experiences have a long-term impact on economic preferences (Chapter 2), and investigate the roles that attention, emotional arousal, and information salience play in risky decision making (Chapters 3 4) using research methods from behavioral economics, experimental economics, and neuroeconomics. The scientific mission of this dissertation is to deepen our understanding of how and why people make choices. We add to the evidence that economic preferences are not inborn and stable; instead, they are shaped by people's experiences. We also explore risky choices like investing money and find that while people often try to minimize regret, our emotional arousal system significantly affects our attention patterns and behavior. In addition, when faced with decisions requiring calculations that are hard to do in your head, people make different decisions than when the calculations are easy. Overall, we paint a picture of human decision-makers whose past experiences and current options determine both the nature of their choices and how they make them.

Adolescence is a critical developmental period characterized by neurobiological changes and exposure to novel experiences. According to the Center for Disease Control, approximately 70% of adolescent deaths in the United States are due to risky behaviors such as reckless driving and risky sexual behavior (Kann et al., 2016). In order to better understand what drives adolescent risk-taking, the current studies utilized an interdisciplinary approach, which combined behavioral economic models and functional magnetic resonance imaging (fMRI) to understand neurobehavioral mechanisms of risky choice. The focus of the current studies is to investigate the extent to which neurobehavioral mechanisms of risky choice change across adolescence, and to identify individual differences that explain real-world risky behavior. In Study 1, we show that behavioral sensitivity to risk and neural correlates of risk processing change across a critical period of adolescence. Importantly, our results indicate that individual differences in neural, not behavioral risk sensitivity are predictive of future engagement in health risk behaviors. In Study 2, we examined the relation between inter-individual differences in adolescent expectations of valued rewards and self-reported risky behavior using an adapted behavioral economic model. Implications and future directions for adolescent risky decision-making are discussed. / Ph. D. / According to the Center for Disease Control, approximately 70% of adolescent deaths in the United States are due to risky behaviors such as reckless driving and risky sexual behavior (Kann et al., 2016). In order to prevent and reduce such risk-taking behavior during adolescence, it is essential to improve our current understanding of the mechanisms contributing to risky decision-making. One promising mechanism that may be critical in guiding adolescents either toward or away from risky behavior is the extent to which adolescents are sensitive to the risk or likelihood of receiving potential rewarding outcomes. To this end, the current work leveraged the used of a longitudinal design with an interdisciplinary approach that combined the use of behavioral economic models, functional magnetic resonance imaging (fMRI), and developmental psychological theory to better understand how adolescents develop risk sensitivity at both the behavioral and neural levels. Importantly, our results in Study 1 indicated that individual differences in neural, not behavioral risk sensitivity are predictive of future engagement in health risk behaviors. In Study 2, we used an adapted behavioral economic model to identify individual differences in adolescent expectations of valued rewards, and assess the relation of these differences to self-reported risky behavior. This research illuminates the critical role that neurobehavioral risk sensitivity might play during risky decision-making, which may have implications for the prevention and amelioration of adverse health risk behaviors.

This study examines whether reference levels change over time and the impact on individuals' risk-taking behavior. I apply expectations-based reference-dependent preferences theory to analyze whether individuals' reference levels change over time in an economic setting. The theory suggests that individuals develop reference levels based on expectations of future outcomes (Koszegi and Rabin 2006). Therefore, this study examines whether individuals' expectations affect the setting of their reference level and how possible changes in reference levels affect subsequent risk-taking behavior. This study also provides evidence on how budget-based contracts impact individual risk taking behavior in a single period setting. Prior research has used multiple theories in an attempt to explain contradictory results relating to budget target difficulty and risk-taking behaviors. This study provides more evidence to the literature by further examining the impact of budget-based contracts on individuals' risk-taking behavior. A 1 x 2 between subjects experiment was conducted over five periods. Budget target was the manipulated factor at two levels: easy and moderate. Results suggest that individuals under easy budget targets make riskier decisions. Additionally, individuals' reference levels change over time and the change in reference level is greater for those individuals who continually attain their budget target, suggesting that expectations do increase the reference level. Lastly, in the current study, changes in reference level do not have a significant impact on risky decision making.

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Adolescents are known to take more risks than adults, which can be harmful to their health and well-being. Interventions aimed at reducing risk taking typically provide descriptions of the negative outcomes that may result from a risky choice, and have shown little evidence of actually preventing risk taking. This lack of efficacy may be due in part to differences between how adolescents process information about risk when it is described (e.g., in a classroom intervention) versus when it is experienced (e.g., when a teenager experiences the outcome of a risky choice). In the present work, I first summarize the Description-Experience (D-E) gap literature from the adult Judgment and Decision Making field, which makes the crucial distinction between choice behavior when information is acquired to descriptions relative to experience. Next, I relate work on the D-E gap to laboratory research on risk taking between adolescents and adults. A review of the developmental literature demonstrates that experience-based experimental paradigms are more likely to show heightened risk taking in adolescents relative to adults (Rosenbaum et al., Resubmitted), and is consistent with an affect-based explanation of risk taking. In Experiment 1, I present a novel within-subjects D-E gap paradigm, which I test in a sample of young adults, and show individual differences in the degree of bias when participants make choices from description verses experience. Subsequently, in Experiment 2, I test cohorts of adolescents and adults in the within-subjects D-E gap paradigm. In this developmental experiment, I additionally measure eye tracking to better understand decision processing and changes in heart rate variability by task (description, experience) and age group. Results show that adolescents and adults take similar risks in DFD and DFE, but unlike adults, adolescents’ choices in DFD do not adhere to prospect theory predictions. Further, in DFD, adolescents spend more time looking at probabilities than values, while adults show the opposite pattern. Conversely, in DFE, adolescents make choices consistent with underweighting rare outcomes, similar to adults. There is some evidence that adolescents show enhanced rare-outcome underweighting relative to adults, even after controlling for sampling bias. Concurrently, adolescents show a higher change in LFHRV from baseline relative to adults during DFE, but not in DFD. In sum, results are consistent with the idea that adolescents have trouble utilizing descriptive information, but are able to adapt choices readily based on information acquired through experience. Teens, relative to adults, may show enhanced biases toward risk taking when a rare outcome is unfavorable, a process that may be supported by higher affective arousal. / Psychology

Risky decision-making and social influence are associated with many health-risk behaviors. However, more work is necessary to understand risky decision-making and social influence. Additionally, to begin identifying ways to change individuals' engagement in health-risk behaviors, more work is necessary to understand whether and how risky decision-making and social influence can be modulated. Using computational modeling in conjunction with other techniques, this dissertation 1) explores mechanisms underlying risky decision-making under social influence (Study 1) and 2) examines how individuals could modulate risky decision-making and social influence (Studies 2 and 3). Study 1 identifies a novel social heuristic decision-making process whereby individuals who are more uncertain about risky decisions follow others and proposes dorsolateral prefrontal cortex (dlPFC) as a 'controller' of this heuristic. Study 2 finds that giving individuals agency in viewing social information increases the utility of that information. Study 3 finds that some individuals can modulate brain patterns associated with risky decision-making using a real-time fMRI (rt-fMRI) neurofeedback paradigm, and preliminarily shows that this leads to behavior change in risky decision-making. In sum, these studies expand on previous work elucidating mechanisms of risky decision-making under social influence and suggest two possible avenues (agency and real-time fMRI neurofeedback) by which individuals can be taught to change their behavior when making risky decisions under social influence. / Doctor of Philosophy / Risky decision-making and social influence are associated with many health-risk behaviors such as smoking and alcohol use. However, more work is necessary to understand risky decision-making and social influence. Additionally, to identify ways to change individuals' engagement in health-risk behaviors, more work is necessary to understand how risky decision-making and social influence can be changed. Here, computational modeling, a way to quantify individual's behavior, is used in a series of studies to 1) understand how individuals make risky decisions under social influence (Study 1) and 2) test ways in which individuals can be guided to change the way they respond to social influence (Study 2) and make risky decisions (Study 3). Study 1 shows that individuals who do not have strong preferences respond to social information in a different way than those who do and utilizes neuroimaging to identify a particular brain region which may be responsible for this process. Study 2 shows that individuals are more influenced by others when they ask to see their choices, as compared to passively viewing others' choices. Study 3 shows that a brain–computer interface can be used to guide individuals to change their brain activity related to risky decision-making and preliminarily demonstrates that following this training individuals change their risky decisions. Together, these studies further the field's understanding of how individuals make risky decisions under social influence and suggest avenues for behavior change in risky decision-making under social influence.

Evolutionary models of adolescent and young adult risk-taking posit that risk-taking increases during this period of the life span as a strategic way for males, in particular, to show dominance, increase perceptions of attractiveness by the opposite-sex, and maximize their chances of acquiring a romantic partner (and ultimately produce offspring). Consistent with this perspective, existing research demonstrates that attractive females increase risk-taking in single males, in part by enhancing males’ sensitivity to rewards and diminishing their ability to inhibit impulsive behavior. By contrast, romantically committed males engage in less risk taking than their single counterparts, although the mechanisms underlying the effect of romantic partners/partnerships on male risk-taking are less clear. In the present study, I employed a behavioral paradigm that has been used in prior studies of peer influence to examine how romantic partners affect decision-making processes and risk-taking behavior in young heterosexual males (18 to 24 years old). I also explored whether there are particular individual and relationship characteristics that moderate the effect of romantic partners on males’ decision-making. This study was conducted using a sample of 134 romantically involved males (mean age=20.2, SD=1.65; 64% White) who were randomly assigned to participate in one of three experimental conditions: alone, in the presence of an attractive female confederate, or in the presence of their romantic partner. Across conditions, I compared males’ behavioral performance on five outcome measures: risk taking (using the Stoplight Task), preference for immediate rewards (using a Delay Discounting Task), reward learning and cost avoidance (using a modified version of the Iowa Gambling Task), and inhibitory control over both neutral and emotionally charged stimuli (using cognitive and emotional versions of the Stroop Task). I found that the presence of romantic partners diminishes risk taking in males, but that romantic partners do not have a significant impact on males’ sensitivity to rewards (neither immediate nor long-term), sensitivity to loss (i.e., cost avoidance), or their ability to inhibit attention to interfering—neutral or emotional—stimuli. However, improvements in cognitive control in the presence of romantic partners were observed among males who report low levels of passionate love. That is, mildly infatuated males exhibited better cognitive control in the presence of their romantic partners relative to mildly infatuated males who were alone. Partner presence had no such effects among males who reported being highly infatuated with their girlfriends. The presence of an attractive female stranger triggered a protective response among romantically involved males—prompting them to take fewer risks (when they are highly committed to their partners), to more quickly avoid decisions that lead to long-term loss (among older males only), and to exhibit better cognitive control (only among males in relatively longer relationships). The presence of an attractive female stranger did not affect males’ sensitivity to rewards. Evidently, the relative impact of an attractive female stranger on males’ risk taking and decision-making is highly dependent on individual and relationship factors, a finding that emphasizes the importance of context when it comes to understanding males’ relative susceptibility to temptation (e.g., other females) and opportunities for potential risk (e.g., infidelity). By contrast, the dampening effect of romantic partners on male risk taking is neither dependent on individual or relationship characteristics nor the result of romantic partners’ influence on reward sensitivity or inhibitory control. However, given the finding that romantic partners enhance cognitive control when feelings of passionate love are relatively low, future research should examine how passionate love and cognitive control interact to predict risk taking. Although I could not identify potential mechanisms to explain why the presence of romantic partners diminishes males’ risk-taking, the current study demonstrates that under specific circumstances—such as when there is high relationship commitment or when the relationship is relatively long—the presence of an attractive female stranger can stimulate romantically involved males to engage regulatory processes that may contribute to their reduced inclination toward risky behavior in that context. This finding is consistent with prior studies and suggests that the presence of tempting stimuli and potential threats to relationship fidelity can trigger males’ deliberate engagement of regulatory processes in effort to maintain their current romantic relationship. In contrast, males’ reduced inclination to engage in risky behavior in the presence of their romantic partners may be automatically activated (without inducing a particular psychological state) regardless of individual and relationship characteristics. / Psychology